Dear Mark: Bloomberg doesn't sound much better:
Egghead.com's 3rd-Qtr Loss Widens as Revenue Declines 58%
Spokane, Washington, Jan. 26 (Bloomberg) -- Egghead.com Inc., an online retailer of computer and software products, said its fiscal third-quarter loss widened as its revenue fell after the closing of its 80 stores, though Internet sales surged.
The company said its net loss was $8.87 million, or 36 cents a basic share, for the period ended Dec. 26, compared with a net loss of $6.63 million, or 29 cents, in the year-earlier period. Total sales fell 58 percent to $41.9 million from $99.1 million, sales, which included $75.4 million in sales from its now-closed retail stores. Sales from its Internet sites rose 77 percent to $41.9 million from $23.7 million.
Egghead.com shut its stores last year to focus on building its three Internet sites to sell computer and software-related products. During the holidays, Egghead opened its revamped Web site that integrated its three Web sites, Surplusdirect.com, Surplusauction.com and Egghead.com under one Internet address, or www.egghead.com. ''The quarter was the most significant in the development of our online business since closing the retail stores in February and repositioning the company on the Internet,'' said Egghead.com Chairman and Chief Executive George Orban in a statement.
The company said its gross margin from operations fell to 8 percent from 10.6 percent in the previous quarter because of an increase in the company's aged inventory reserve and a free shipping promotion related to the introduction of the new Web site.
The Spokane, Washington-based company said its registered auction bidders rose 35 percent to 326,000 as of Dec. 26 from 242,000 on Sept. 26.
Shares of Egghead.com fell 3/16 to 20. Its financial results were released after the close of U.S. trading. |
